The US and Japan conducted another round of trade discussions in Washington as officials strive to finalize an agreement before the Group of Seven summit in Canada and an upcoming meeting between Prime Minister Shigeru Ishiba and President Donald Trump.
Ryosei Akazawa, Japan's leading trade negotiator, engaged in a 70-minute conversation with US Commerce Secretary Howard Lutnick and a 45-minute meeting with Treasury Secretary Scott Bessent.
These discussions occurred shortly after Ishiba mentioned that Japan continues to request the US to lift tariffs following a conversation with the president.
Akazawa refrained from indicating whether a potential agreement is on the horizon or commenting on whether a deal might be announced by Ishiba and Trump during the G-7 meeting in Canada, beginning Sunday. He noted that he might accompany the premier to Canada.
Following Trump's earlier call, Ishiba expressed that both parties have agreed to expedite negotiations for a mutually beneficial agreement and to convene in Canada.
Japan is pursuing a formal accord with the US, seeking assurance that it will be exempt from further tariff increases in key sectors like automobiles, according to reports.
Japan finds itself among the top global exporters facing significant risks from Trump's imposition of trade tariffs, particularly as its economy hovers near a technical recession ahead of a national election. The US has implemented a 25 percent tariff on imported vehicles and auto components, alongside a 50percent tariff on steel and aluminum. An across-the-board 10 percent duty on other Japanese goods is set to rise to 24 percent on July 9 if no agreement is reached.
The auto-related tariff is expected to have the most profound impact on Japan's economy since cars and auto parts constitute one-third of the nation’s exports to the US and the sector employs a significant workforce.
Earlier this week, Trump proposed the possibility of further increasing auto tariffs, which would further intensify the strain on Japan’s major automakers and a large network of suppliers and related industries.
Toyota Motor Corp., Honda Motor Co., Nissan Motor Co., and various other Japanese vehicle manufacturers are already preparing for a combined profit slump exceeding $19 billion in this fiscal year due to the existing tariff.
Akazawa mentioned that Japan is working to prevent any increases in auto tariffs through its bilateral discussions with the US. He did not disclose any additional details about the current negotiations and stated that Japan continues to pursue a comprehensive trade agreement package. Akazawa confirmed that he has already updated Ishiba on the latest negotiation developments while withholding specifics from their conversation.
Trump has formally indicated the possibility of approving the acquisition of United States Steel Corp. by Nippon Steel Corp. The Trump administration has sent a proposed national security arrangement to the companies on Friday that would allow the sale as long as the companies adhere to the government's stipulations.
Progress towards accepting this deal may signal a favorable reception from Trump toward Japanese initiatives to invest in US production that secures or creates American jobs. Japan has underscored its position as the leading foreign investor in the US as it seeks to finalize a deal with the Trump administration.
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Regarding the timeline for a US-Japan trade agreement, Bessent did not mention any potential deadline extensions during the recent talks, according to Akazawa. The Treasury Secretary suggested earlier this week that the July 9 deadline for implementing postponed reciprocal tariffs could be extended for countries engaging in good faith trade negotiations.